There is talk all over the news about the debt ceiling. The debt ceiling is the amount the US government is allowed to borrow. If we reach the “ceiling” or limit, we have to stop borrowing so much money and put our house in order. What does putting our house in order mean? I don’t know. It may mean that we stop going to wars we can’t afford as I mentioned in my blog here. It may mean cutting good important programs that we all like and love. It may mean increasing taxes. The details will be debated. Mud will be flung. Everyone will be marked with the scarlet “A” for Atrocious. regardless of the name-calling and finger pointing, the real hard work of getting on a budget starts after you have a limit.
When a family has a budget or limit, they are able to work within that limit and make priority decisions. If you decide not to carry a monthly budget… it will impact your decisions. You will spend less, buy a smaller house, and possible NOT send your kids to private school. If you decide tomapy off ONLY the minimal payment on your credit card and continue to sign up for every card sent your way, there will be consequences to your decisions.
My mom and dad taught me to be Debt-o-phobic. To have a healthy fear of debt. To spend less than I make. To put off purchases that I couldn’t pay cash for. They taught me that if I had a credit card, I should make sure I pay off the balance at the end of the month. My mom and dad were and are not rich. My dad was a public school sixth grade teacher. He was constantly teaching us to “lower” our debt ceiling. He constantly reminded us to fear the potential waste of compounded interest that accrues when you are paying for things you bought last month or last year. He taught us not to Spend Tomorrow’s Money today. My mom did as well. As heart-of-the-earth middle class parents, they taught us the value of simplicity, hard work, and spending wisely.
I bought my first car for $200. I had to make my own insurance payments by working at McDonalds as well as my work as a soccer referee. In indoor soccer, I would sit up on a step ladder for an hour and make $4.25. My dad used this as a reference point for my spending. When our family went out for a dinner that cost $20.00. My dad would remind us that this meal costs us “Almost five hours of sitting on the ladder.” This connection between work, profit, and spending helped me evaluate my purchases and wants vs needs later in life.
As politicians debate whether to “raise the debt ceiling,” common sense would suggest a whole different approach. We need to lower the debt ceiling. We need to get our nation out of the red. Rather than debating raising the debt, we need to create a path to paying off our debt.
The news today confirms that our nation is in trouble, big trouble. The excessive spending, borrowing, and inflating is heading toward a terrible Collision with reality. Check out these clips from news today.

Economy slows

US stocks plunge

Double dip recession warning

The borrower is enslaved to the lender. -Proverbs

Here is a clip explaining why the US recovery was not real and why the data we are seeing is the inevitable conclusion of borrowing more. Check out for more information

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